What Legal Safeguards Can You Implement in a Live-In Relationship to Prevent Financial Abuse?

All over the globe, there is a discernible shift towards cohabitation in relationships rather than formal marriage. Even if these unions are fast becoming common within various societies, there are still a lot of issues especially on economic status and possible financial abuse. Those who suffer from financial abuse because their partner tends to take control over certain assets, they have on their own usually suffer in silence. 

Hence, in a bid to protect both parties from any economic harm, it becomes apparent that there is need to know and implement provisions of the law pertaining cohabitation relationships.

Financial Abuse in Live in Relationships: About

Before getting into the legal remedies, it is essential to first understand the concept of financial abuse. Financial abuse takes several forms including but not limited to:

• placing restrictions on the available resources, or finances of the victim
• restraining the victim on how much he or she spends
• concealing financial information from the victim
• misusing the financial mass or credit of the victim
• disallowing the victim to go out to get a job or sabotaging the job
• manipulating the financial scarcity of the victim

Consequently, apart from physical and emotional abuse, the consequences of financial mistreatment are massive, and oftentimes, nearly invisible. It could leave the victims with unpaid accrued debts or poor credit rating, embroil them into abusive relationships, and ultimately ruin their economic well being.

Legal Safeguards in a Live in Relationship to Prevent Financial Abuse

In states where cohabitation is permit by law, the lack of official documents such as marriage licenses or prenuptial agreements can cause confusion, especially when it comes to debt obligations, property ownership, and claims to money. Making a precise and binding legal plan can therefore be essential for all parties.

Live in Relationship Agreements

• Assets and property: The contact should spell out how income, assets, and property will be share or allocate. These include stating whether the property is jointly or individually owned, as well as the distribution of jointly owned property in case of break up.
• Who will pay for the debts: It should be state who is responsible for the dissolution of a partnership’s existing debts. This ensures one partner does not incur a debt without the knowledge and consent of the other.
• Financial contributions: The contract may make it clear how savings, expenses for daily sustenance and other household expenses will be divide. This ensures that both partners are responsible for paying bills and prevents one partner from taking advantage of the other financially.
• Economic autonomy: In any agreement, it is important to stipulate that each spouse shall continue to remain financially autonomous and in control of their incomes, savings and possessions.
• Resolution of a conflict: The provision shall indicate how any controversies concerning finances will be settle, without engaging in expensive litigation spats, for example, by mediation or arbitration.

Joint Accounts with Caution

A lot of couples in live-in relationships have the option to open joint bank accounts for shared costs. Even while joint accounts can be useful, you should approach them carefully to prevent financial misuse.

Couples should do the following to stop financial abuse with joint accounts:

• Use joint accounts only for certain purposes, such splitting bills or rent.
• Develop separate accounts in the form of ledgers for investment, saving and personal income. 
• It is advisable to monitor the family account closely to enhance discipline as well as accountability.

Alternatively, spouses may decide to have a household account while all other finances remain separate. This allows for financial independence for each person but encourages equality in the relationship.

Separate Legal Ownership of Assets

• It is often recommend that spouses or partners do not mix their accounts with each other’s and each maintains ownership of their respective properties in order to prevent any future disagreements and to avoid misuse of funds by one party. This often includes real estate, savings, investments, and personal items.
• Having all assets in the name of each partner helps prevent and ease disputes on ownership and also makes it harder for one partner to transfer the other partner’s assets. However, in cases where the couple may want to acquire joint property such as signing titles of property ownership or an escrow deed for a house, it is also a necessary practice to have some clear legal understanding.
• Determining the legal ownership of property or assets, especially at the beginning, is very important, because in some regions the laws that govern the distribution of property or assets in cohabiting partners are not as easily understandable as those in marriages.

Prenuptial or Postnuptial Agreements

Prenuptial agreements are often link with marriage; nonetheless, a number of institutions allow couples who are not marry but are cohabiting to enter into such agreements. These agreements, known as prenuptial agreements, sign prior to moving in together, or post-nuptial agreements, sign after residing together, reduce the ambiguity of law by defining how property and debts incur during the relationship would be dealt with in the event of a separation.

More precisely, these agreements can:

• Protect any premarital or pre-cohabitation property of either spouse.
• Restrict the level of post-divorce financial assistance one spouse may be require to pay the other.
• Clarify how jointly owned properties will be settle in the event of divorce.

The agreements can prevent one spouse from abusing the finances of another by properly stating the rights and responsibilities concerning finances for each of the spouses.

Seeking Legal & Financial Advice

• Lastly, it is recommend that both people seek independent legal and financial advice before committing to a cohabiting relationship or making any serious financial commitments together. 
• A financial adviser may give recommendations on how to manage common monetary resources while still protecting one’s economy from being exploit, and a lawyer can help with preparation of contracts that can be legally enforce, like cohabiting contracts.
• Whenever there exists a possibility of financial abuse, it is imperative to act promptly and seek professional help. Victims of financial abuse are provided with several options and legal safeguards in some jurisdictions including restraining orders, civil actions, and even criminal prosecution in extreme cases.

One can talk to lawyers from Lead India for any kind of legal support. In India, free legal advice online can be obtain at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online free through Lead India.